Showing posts with label Generic Drug Market Size Indonesia. Show all posts
Showing posts with label Generic Drug Market Size Indonesia. Show all posts

Wednesday, May 30, 2018

Indonesia Pharmaceutical Market Research Report to 2022: Ken Research

What is the Potential of Indonesia Healthcare Market?
Indonesia Healthcare Market has shown a positive incline during 2012-2017 but with respect to the expanding population of Indonesia, the market is still underserved especially in the underdeveloped and rural areas as of 2017. People across Indonesia are facing several health care issues due to sedentary lifestyle and fast food consumption habits, such as obesity, diabetes, and other cardiovascular diseases, which are demanding for technologically advanced healthcare infrastructure. The healthcare market has increased on the account of increasing healthcare facilities, innovation in pharmaceutical manufacturers and clinical laboratory services and expansion of pharmacy retail chains across the country. The market has witnessed innovation in nutritional health segment, biopharmaceuticals and specialty pharmaceutical products.

Hospitals in the country contributed to the maximum share of overall healthcare market as of 2016. Over ~% of the market revenues were generated from the hospitals segment followed by the pharmaceutical market with ~% in 2017.

Indonesia Healthcare market revenue has increased from USD ~ billion in 2012 to USD ~ billion in 2017 primarily due to rising prevalence of non-communicable and lifestyle diseases including diabetes, asthma and heart disorders. The industry has undergone various deregulation programs which has encouraged foreign investment in the industry. Furthermore, increase in demand for generic medicines has led the major players in the industry to expand their production capabilities.

How Has the JKN Scheme Impacted the Indonesia Pharmaceutical Market?
The market size of Indonesia pharmaceutical industry has increased from USD ~ million in 2012 to USD ~ million in 2017 at a CAGR of ~%. The market is in the growing stage supported by favorable government regulations and entry of foreign players in the space.

During 2017, the domestic players dominate the market with major focus on production of generic drugs. This is driven by the implementation of universal healthcare system. The program has led to an increased demand for generic medicines from public and private hospitals participating in the program.

Further, the industry witnessed various deregulation programs which encouraged foreign investment in the industry. For instance, the government removed the pharmaceutical industry from its negative investment list implying 100% foreign ownership is allowed. Major therapeutic segments was anti-infective due to the prevalence of communicable diseases such as TB, influenza and others followed by Gastrointestinal, cardiovascular, Central nervous system, respiratory, musculoskeletal and dermatology.

How Have the Various Segments Performed in Indonesia Pharmaceutical Market?
Anti-infective drug sale has contributed to the largest share of ~% in the revenue share of Indonesia Pharmaceutical industry in 2017. This is mainly due to high prevalence of bacterial and communicable diseases. This segment is dominated by prescription drugs since the patients infected with bacterial and viral diseases need to consult a doctor for proper treatment of the particular disease. This is followed by Gastrointestinal and metabolism drugs with ~%, cardiovascular system drugs with ~%, Central Nervous system drugs with ~%, Respiratory system drugs with ~%, Musculoskeletal system drugs with ~%, dermatology drugs with ~%, genitourinary and hormonal drugs with ~%, blood related drugs with ~%, oncology with ~% and rest of the therapeutic segments with ~% of the revenue share in 2017.

Domestic players have accounted for ~% of the revenue in Indonesia pharmaceutical market in 2017 driven by the implementation of JKN (National Health Insurance System) in 2014. The product portfolio of majority domestic pharmaceutical companies is dominated by generic drugs. International players have captured ~% of the revenue share in 2017 driven by favorable government norms for foreign ownership.

How Major Segments in Indonesia Pharmaceutical Market have performed?
Generic drugs have accounted for the major revenue share of ~% in 2017 driven by the increased demand from government run hospitals and clinics. The share of patented drugs has increased from ~% in 2013 to ~% in 2017. Further, ethical generic drugs have accounted for ~% of the Indonesia generic drug market revenue in 2017 followed by free sale drugs with ~% and unbranded drug sale with ~%. The Prescription drugs sales have accounted for ~% of the revenue share in Indonesia Pharmaceuticals Market. OTC drugs have accounted for ~% of the revenue share in 2017 as more number of people took to self medication. Domestic sales have accounted for a majority revenue share of ~% in 2017 whereas exports have accounted for a small share of ~%. The domestic market is dominated by the sale of low priced ethical generic medicines. West java has accounted for ~% of the pharmaceutical companies in 2016. This is followed by Jakarta with ~%, East java with ~%, Central Java with ~% and others with ~% of the companies

What are the major Trends and growth Drivers in Indonesia Pharmaceutical Market?
Growth in animal pharmaceutical has added to the overall market revenue. The animal pharmaceuticals industry has benefitted from opportunities in terms of new legislations for animal pharmaceuticals. With the launch of 11th economic package, the government has aimed to boost the domestic production of medicines' raw materials. Moreover, the government has removed the pharmaceutical industry from its negative investment list (which lists the sectors that are closed, or partially closed, for foreign ownership) implying 100% foreign ownership is allowed. The policy also encourages joint ventures between foreign pharmaceutical companies and local ones in order to transfer knowledge and technology. In addition to this, the government is planning to offer fiscal incentives and making the investment procedure easier to attract foreign players in the industry. 

The Universal healthcare system launched by the government in 2014 has led to an increase in the production of generic medicines. This has led to lowering margins as people have shifted from ethical drugs to prescribed generic drugs but at the same time the sales volume has increased. The market has witnessed rising number of mergers and acquisitions as a part of expansion strategy by major domestic and international players.

How is the Competitive Ladscape of Indonesia Pharmaceutical Market?
There are ~ pharmaceutical companies (~ domestic and~ international companies) located in Indonesia and ~% of them are located in Java in 2016. These players compete on the basis of distribution network, product portfolio, marketing activities and research and development. The domestic players dominate the generic drug and OTC drug segment. The domestic players dominate the generic drug and over the counter drug segment. International players have better expertise, skilled labor and infrastructure to produce such medicines at competitive prices.

What is the Future Potential of Indonesia Pharmaceutical Market?
The Indonesia pharmaceutical industry is expected to increase from USD ~ billion in 2018 to USD ~ billion at a growth rate of ~%. The industry growth will be led by Indonesia’s large population and growing middle-income class, supportive government policies and higher investment in the industry. With the increase in incidence of communicable diseases such as HIV, TB, therapeutic segments such as anti infectives and respiratory are expected to grow. Major companies are expected to increase investment in nutritional and herbal medicines due to changing preference in the industry. Apart from manufacturing generic and patented drugs, pharmaceutical companies will shift focus to other niche segments such as combined dosages, novel drug delivery areas. Further in order to overcome the shortcomings, Contract Development and Manufacturing Organizations (CDMOs) will emerge as an attractive resource for manufacturers seeking to expand their capacities

For more information on the research report, refer to below link:

Related Reports by Ken Research



Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204

Thursday, February 22, 2018

Indonesia Pharmaceutical Market will be led by Growing Generic Drugs and Bio-pharmaceutical Market: Ken Research

Expansion of product portfolio by major pharmaceutical companies and increase in demand for generic drugs were the key factors driving growth in Indonesia pharmaceutical Market.
Indonesia healthcare market has observed a favorable growth in the last 5 years. The market is still under penetrated especially in the tier 2 areas in Indonesia as of 2017.
The launch and execution of JKN scheme by the government has led to surge in demand for primary healthcare facilities and increased generic drug sale. The market has underscored various deregulation programs which has stimulated foreign investment in the industry.
Indonesia Pharmaceutical market is dominated by domestic players which controlled majority of the market in 2017. Recent favorable government regulations have facilitated the entry of foreign players in the space. There are 206 pharmaceutical companies (182 domestic and 24 international companies) located in Indonesia.
The market is driven by deregulation in FDI regulations in pharmaceutical and favorable government policies leading to increase in sale of generic drugs. Increased investment in innovation of new drugs with higher margin led to increased profitability of pharmaceutical companies. Expansion of major companies through mergers, acquisitions and alliances has enabled companies to manufacture high end medicines and pharmaceutical products.
The local companies largely focus on generic drugs manufacturing that are dependent on imported active pharmaceutical ingredients (API), mainly from China and India.
As Jaminan Kesehatan Nasional (JKN) has prioritized the use of generic drugs, the demand for unbranded generic drugs has grown as Indonesians increasingly rely on generic drugs. This has augmented the domestic players’ sales. But at the same time, the market has also witnessed an increase in number of new players which has driven down the margins.  Since the product portfolio of majority domestic pharmaceutical companies is dominated by generic drugs, the sales have gone up since 2014. Moreover, the prices of generic drugs are regulated and consistent across Indonesia whereas the prices increase by 10% for branded drugs annually. Domestic players have witnessed success in rural areas of Indonesia. Due to inaccessibility and language barrier existing in the rural areas, the domestic players have been better able to bridge the gap as compared to international players.  The domestic players have also dominated the Over the Counter drugs which are driven by the increasing self medication behavior of the population. Domestic players dominate the Anti-Infectives, Gastrointestinal and metabolism and respiratory therapeutic segments.
Indonesia biopharmaceutical industry is in the nascent stage. There is a strong interest from research-based global biopharma companies to conduct clinical research in Indonesia because of the large concentrated patient populations and disease profiles. Furthermore, as the industry intends to move towards self sufficiency, Indonesian government released the 11th economic stimulus package with the aim of boosting the domestic production of medicines' raw materials, particularly for five product categories namely biotechnology, vaccines, herbal extracts, active pharmaceutical ingredients and medical devices.
In order to tap the existing potential, large domestic pharmaceutical companies have tied up with international players to manufacture biopharmaceutical products for the treatment of chronic diseases such as cancer, kidney failure and others
ProBioGen AG, a CDMO based in Germany, and Bio Farma, a state-owned vaccine manufacturer in Indonesia, has signed an agreement to develop a biosimilar to the monoclonal antibody (mAb) trastuzumab for cancer treatment that will be produced in Indonesia.
Kalbe Farma has also launched biosimilar version of insulin in Indonesia to treat diabetes mellitus which is 38% cheaper than the existing insulin. Biosimilars are cheaper imitations of drugs known as biologics.
Kalbe Farma set up its biological drug factory, PT Kalbio Global Medika in Cikarang, Bekasi, with an investment value that ranges between USD 30 to USD 35 million. The factory is built under the joint venture between Kalbe and a South Korean pharmaceutical company Genexine Inc, PT Kalbe-Genexine Biologics
Key Topics Covered in the Report:
Indonesia Dietary Vitamin Supplements Market
Pharmaceutical Market Size Indonesia
Indonesia Vaccine Market
Indonesia Pharmaceutical Regulations
Number of Pharmaceutical Companies Indonesia
Indonesia Pharmaceutical Market Players
Obese Population Indonesia
Generic Drug Market Size Indonesia
Number of Healthcare Centers in Indonesia
Budget Allocation on Healthcare Indonesia
Healthcare Spending Indonesia
Vitamin and Dietary Supplement Market Indonesia
For more information on the research report, refer to below link:
Related Reports by Ken Research
Contact:         
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204